Employee Retention Credit Not Working for 2021 Payroll - Be Advised
If you've been using the employee retention credit in 2020 or plan to use it in 2021, please be advised that it is not actually calculating the credit. I talked to customer service on 12/30 and was assured they would have their software updated, however, when I ran payroll on 1/6/2021 it allowed you to enter your employees hours into the ERC regular hours box, but nothing is actually being calculated. This will cause a major error on your 941 and weekly taxes due. I contacted 2 different customer service reps on 1/6 and unfortunately, they have no idea what is going on. They just keep telling me to enter the hours into the ERC regular box. One even told me that the system would adjust it after waiting 24 hours. I explained that this credit must be calculated immediately because weekly 941 tax payments are based on this credit, but they have no idea how this credit works. As you can see in the screen shots from a tax liability report run for yesterday's "last pay period" and a one for "last month" the credit is not being deducted. If anyone knows of a fix, please share. In the meantime, please be advised that the credit is no longer working correctly (for 2021 should now be 70% for first 10k in wages per period).
I appreciate you for taking the time to share this information regarding the employee retention credit, which is not applying to the current payroll.
This information will be a great help to other users who are experiencing the same issue. Since you've contacted our phone support already, rest assured that you'll receive notifications once any update about this matter is made available.
FYI: QBO is also having issues in regards to the payroll tax credits being applied when using the Employee National Paid Sick Leave, if the pay date falls within 2021.
I spent over 3 hours online with QBO last week trying to inform them of the glitch in the system. I uploaded payroll reports with the issues clearly highlighted...Needless to say after 3 hours of patiently hoping for a solution, I was informed that the issue would have to be elevated to a Tier 2 support team and they would email me once they had a solution.
I have yet to receive an email. I feel as if the QBO employee that was on the other end of the CHAT session was not even looking at the PDF's I had uploaded.
I do not understand how this is even an issue.
HOW ARE SMALL BUSINESSES GOING TO SURVIVE WHEN WE HAVE TO PAY OUR BOOKKEEPERS TWICE FOR ISSUES THAT QUICKBOOKS ONLINE SHOULD NOT BE HAVING?
I made the mistake of filing the 4Q20 941 and our W-2's for 2020 before realizing this ASTRONOMICAL ERROR WITHIN THE QUICKBOOKS ONLINE SYSTEM. So, yay! How easy will it be for me to file a 941X and a W-3C within the QBO system!?
QUICKBOOKS USED TO BE AN ENTITY PEOPLE RESPECTED...NOT ANYMORE. NOT AFTER ALL THESE ISSUES. QUICKBOOKS HAD PLENTY OF TIME FOR THEIR PROGRAMMERS TO WRITE, TEST AND UPDATE THEIR PROGRAM; WE ARE NOW MID-JANUARY....WHAT IN THE HELL IS TAKING SO LONG?
Please know this isn’t the kind of service we want you to experience with us. Due to the challenges, we’re facing right now, we're running low on staff. Rest assured our support team is working diligently to cater all of our users’ queries.
To get around this, I’d recommend contacting them again. I understand you’ve already reached out to our support team. However, with their proper tools, they are capable of checking your account in a secure environment and look into the cause of this. Let me show how to get in touch with them:
Navigate to the (?) Help icon.
Choose the Talk to a human option (type it again if prompted).
Select I still need a human then click Contact us.
Enter the details of your concern, then proceed with Let's talk.
Choose either Get a callback or Send a message (if you prefer to chat).
From there, you can share with them the ticket provided in your previous interaction. This way, the next agent who will assist you can look into it and will know what to do. They can also direct to our Tier 2 agents if needed.
In the meantime, you can also utilize this article for additional troubleshooting steps in correcting your W-2’s: Fix an incorrect W-2.
Keep me in the loop if you have other follow-up questions. I’ll be around to help you. Stay safe and keep well.